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IN AND AROUND THE CAPE PENINSULA THE CITY’S MOST EXPENSIVE MARKETS CONTINUED TO SHOW THE CLEAREST SIGNS OF SLOWING PRICE GROWTH IN THE 1ST QUARTER. Atlantic Seaboard, has seen its price growth slow the fastest off the highest base, while in certain more affordable sub-regions of the City there has still been some growth acceleration.

In the 1st quarter of 2018, we saw further slowing in house price growth in the City Bowl and the other major 3 sub-regions closest to the City Bowl, i.e. in and around the Cape Peninsula.

These sub-regions near to the city and the mountain have shown some of the strongest house price inflation of all of the Cape Town sub-regions over the past 5 years, and this prior deterioration in home affordability appears to have led to slowing demand, and thus price growth, in recent quarters.

The most expensive sub-region in the City of Cape Town Metro, i.e. the Atlantic Seaboard, has seen its average house price growth slow the most sharply off the highest base, from a revised multi-year high of 27.5% year-on-year in the final quarter of 2016 to 2.3% by the 1st quarter of 2018.

This does not surprise us, as this sub-region has experienced the most rapid cumulative growth of all the sub-regions over the past 5 years, to the tune of 111%.

The City Bowl started its price growth slowdown a little earlier than the Atlantic Seaboard, and has gone from its revised multi-year year-on-year growth high of 23.6% in the 2nd quarter of 2016 to 10.0% by the 1st quarter of 2018.

The Southern Suburbs, the other one of the “most expensive 3” sub-regions, saw further slowdown from 10.1% in the prior quarter to 8.4% in the 1st quarter of 2018, having gradually slowed from a multi-year high of 16.1% in the 2nd quarter of 2015.

Arguably reflective of the heightened search for relative affordability in or near to Cape Town’s prime place of employment, the City Bowl, is the indication that the most affordable sub-region within close proximity to the City Bowl, i.e. the Near Eastern Suburbs sub-region (including amongst others Salt River, Woodstock and Pinelands), shows the fastest house price growth of these “Major 4” sub-regions in or near to the Cape Peninsula.

Proximity to the City Bowl (and for that matter to Claremont Business Node) is becoming increasingly important as the city’s traffic congestion deteriorates. From a 19.4% high in the 1st quarter of 2016, the Near Eastern Suburbs House Price Index has also seen year-on-year growth slowing, but less significantly than the others, to reach 13.4% by the 1st quarter of 2018. It now has the fastest price growth rate of the Major 4 sub-regions surrounding Table Mountain.

THE TREND OF SLOWING GROWTH IS LESS PRONOUNCED IN THE MORE AFFORDABLE SUBURBAN MARKETS, AND SOME SUB-REGIONS EVEN SHOW STRENGTHENING PRICE GROWTH.

Further away from Table Mountain, in Cape Town’s more affordable suburban areas, the pattern of “slowdown” in price growth remains less clear, and there has even been some acceleration in certain sub-regions. We remain of the belief that the extremely high prices in the areas close to the City Bowl may have been encouraging a portion of aspirant buyers to shift their home search to these more “affordable” City of Cape Town housing markets a little further away, in search of greater affordability.

All 3 major Northern Suburbs sub-saw double-digit average house price growth rates in the 1st quarter of 2018, with 1 out of the 3 showing a growth acceleration.

The Western Seaboard Sub-Region (including Blouberg, Milnerton and Melkbosstrand) saw a slowing in year-on-year price growth, from 14.7% in the previous quarter to 14.4% in the 1st quarter of 2018, the 2nd successive quarter of slowing growth.

The “Bellville-Parow and Surroundings” sub-region also saw its price growth slow, from 11.4% year-on-year in the final quarter of 2017 to 10.8% in the 1st quarter of 2018, after prior quarters of strengthening.

However, the Durbanville – Kraaifontein – Brackenfell sub-region continued to accelerate mildly, from 9.8% growth in the final quarter of 2017 to 10.1% in the 1st quarter of 2018.

Moving into even more affordable regions, ones which incorporate many of the city’s Apartheid Era former so-called “Coloured” and “Black” Areas, we have recently seen price growth accelerations.

This, too, we believe could reflect a mounting search for relative affordability after rapid price inflation in the higher priced “suburban” areas in recent years.

Therefore, we have seen the Cape Flats House Price Index experience a further growth acceleration, from 11.4% year-on-year in the previous quarter to 11.6% in the 1st quarter of 2018. The Elsies River-Blue Downs-Macassar Region has also seen house price growth accelerate further to reach 25% year-on-year, from 23.7% in the previous quarter.

CONCLUSION

In short, in the 1st quarter of 2018, the City of Cape Town has seen further mild slowing in average house price growth for the 7th consecutive quarter, although the most recent 10.0% year-on-year growth rate remains strong.

South Africa’s new plug and socket standard, SANS 164-2 or ZA Plug, has become mandatory for new installations, the SABS confirmed to MyBroadband.

This means that any new buildings erected must incorporate electrical sockets that conform to the new standard.

An amendment to the wiring code introduced in 2016 stated that the ZA Plug would become semi-mandatory for new installations in March 2018.

Each new plug point must have at least one socket that can accommodate a ZA Plug, it said.

The amendment came into effect two months early, said the SABS, and from January 2018 all new installations must incorporate the ZA Plug.

The ZA Plug has the same hexagonal profile as the Europlug seen on cell phone chargers but includes an earth pin. It is substantially more compact than South Africa’s three-prong plug standard and has much thinner pins.

Adoption of the standard has been slow, however.

Gianfranco Campetti, the chairman of the working group that looks after the standard, said the industry has been slow to respond and use the standard in essential products.

He said the appliance industry, in particular, has been slow to provide goods with the new plug.

The switch

When the IEC first began development on IEC–906–1, which became IEC60906–1, it was trying to establish a universal plug and socket system.

Despite its efforts, commercial and political interests caused the standardisation initiative to fail in Europe – and Brazil and South Africa are the only countries to have adopted the 250V standard.

However, Brazil deviated from the standard by delivering either 127V or 220V mains using the same socket.

Japan and the US have plugs and sockets that are compatible with the IEC’s envisioned global standard for 125V sockets.

Talk of adopting the new standard began in South Africa in 1993, and a version of SANS 164–2 that dates back to 2006 is available online.

According to the SABS, the ZA Plug appeared in South Africa’s wiring code (SANS 10142–1) during 2012.

Old standard still legal

Although it is now required to integrate sockets which comply with the ZA Plug standard in new buildings, the old standard remains legal.

The wiring code amendment also does not affect existing buildings, including homes.

It is therefore not currently necessary for South Africans to switch the electrical sockets in their homes.

Bramble is an online platform aimed at connecting students wanting to sell or buy textbooks, as well as physical and electronic notes. This not only allows students to earn an extra income, but it also makes the learning process a whole lot easier.

As students ourselves, we understand the real life of a student and we hope to give you more room for the good life, more time for studying and, most importantly, more money at the end of the month.

Chas Everitt Cape Town South is the first company in South Africa to highlight waterwise properties.
“This step recognises the substantial investment that many sellers have made in their properties with regard to water efficiency as well as independent water sourcing and storage solutions.

These efforts and investments can cost hundreds of thousands of Rands and a mere passing reference in the property description fails to draw sufficient attention to the investment which has gained enormous importance as the drought has become a crisis in our region. This ‘waterwise’ marketing campaign further serves to raise the awareness of the water situation in our region. We are encouraging other real estate businesses to embrace the idea and follow our lead and use the waterwise logo in their marketing.

Sellers and buyers have already responded very positively to this initiative and we are highlighting these properties in our listings on www.CEI.co.za as well as www.CapeTownProperty.com and www.Constantia.co.za

Operated and managed by eNeighbourhoods, this service is sponsored by Chas Everitt Cape Town South as a service to the community. Our brief is to provide and share local content of interest to the various areas in the Cape Town South area through the various blogs to the benefit of the community and the sponsor. It is further the intention to offer at no cost to the members of the community the facilities of the blog. Other businesses and organisations thus have a powerful and effective means to share their news at no cost.

If you or your organisation has a newsworthy item or promotion that you wish to share, you may submit the information by email, in a way that we can copy and share together with one or two suitable images. You should also indicate what suburbs you wish this to be shared with however the suburb or suburbs must correspond to the content of your news.

We particularly encourage the submissions of any special offers and benefits, as this serve everyone’s interest very well.

Tokai has a strong turnover of sales for such a small suburb, a strong indication of the demand for property in the area, although the number of sales dropped slightly from 42 in 2016 to 38 in 2017 with the highest sale in Glenugie Ave at R6 840 000 earlier this year. Average price for 2016 was R3 928 268 and R4 251 439 for 2017. Property prices in Tokai have maintained steady growth over the last few years with the annual average increase in sales prices between 8-10 % year on year. The average days listing is 67 days with a difference of approximately 7-10% between asking and selling price.

Due to the area’s many attributes, residential properties in Tokai are in constant high demand across all sectors of the market. Entry-level homes and cottages start from around R2.5million, ranging up to around R4-6 million for a spacious family home in sought-after Dennendal close to the greenbelt and Tokai Forest and particularly the Forest Glade security complex, where recent sales exceed R4m, homes are generally snapped up when they come onto the market, as such properties are usually tightly held by owners.

Despite the slowdown in growth nationally, Cape Town and Tokai are still thriving. However, due to changing property market conditions, the key for serious sellers is smart pricing and all the more reason to choose a reputable company and agent that can offer you the best marketing solutions for your property –

Best described as an “Entertainers’ delight” in agent speak, but it is a warm home that a loving family will grow and remember. Besides the three bedrooms it has the most delightful reception rooms that all opening onto a full-length, all weather patio with leafy views of a manicured garden setting off a sparkly blue pool and the Constantiaberg mountains. The property is on a good sized corner erf and borders Dennendal, Tokai. This really should be regarded as essential viewing and the sooner the better! To view contact Lisa Rowell , and I do have to stress such a property is not going to be available for too long in this market so act now. Full details at : http://www.cei.co.za/showpropertySC067000001994.cp

Although there were 9 fewer sales, the average selling price was up by about 7.97%.

Buyers only managed to negotiate an average of -5.28% off asking prices this year compared to -6.12% last year. Gone are the days of immediately knocking 10% off asking prices.

Days on market, typically driven by asking price, remained fairly similar at 39 and 31 respectively.

It’s interesting from an Estate Agent’s point of view to see the changing trends in buyer sources. Showhouses and Newspaper Advertising were King but stats tell the tale of their decline. Showhouses; only 11 in 2014 and a meagre 4 in 2015 yielded buyers. Newspaper Advertising; only 3 in 2014 and 2 in 2014. Security concerns and ever more pressure to make the most of off time can be ascribed as reasons for fewer Showhouses, and of course the exponential improvement in form and functionality of property web portals will definitely impact on the cost-effectiveness of Newspaper Adverts.

There’s no doubt that fascinating times lie ahead with the threat of further interest rate increases ever present. Real Estate activity will continue to be suppressed with pressure from banks keeping would-be first time homeowners in the rental market and with the continuing low stock situation, would-be sellers have little choice to tempt them into new investment.

Whatever lies ahead you can rely on our Tokai area specialist, Lisa Rowell, to be at your call for any property related advice.

With another round of municipal valuations on the cards in 2016, Lisa Rowell – 082 844 0800 will be more than happy to provide free, no obligation and confidential evaluation so you can see what your home might be worth in today’s market.

(All figures sourced from Propstats for the suburbs of Tokai and The Hamlets, excluding Sectional Title and Lifestyle Estates.)